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Anon25 [30]
3 years ago
5

Explain what ""market value of a corporation"" means. How does that compare to the ""book value"" of a corporation?

Business
1 answer:
lidiya [134]3 years ago
6 0

Answer:

Market value of a corporation is its value according to the stock market. Book value on the other hand is the difference between assets and liabilities of a corporation.

Explanation:

The market value of a corporation is the value attributed to it by the financial market. It is calculated by multiplying the price of each share by the number of outstanding shares.  

The book value is the value of the corporation if the assets are liquidated and liabilities are paid off. It is calculated by finding the difference between assets and liabilities.  

If the market value of a corporation is greater than its book value it means the market does not believe that the company is worth what it has mentioned in its book value.  

If the market value is higher than the book value, it indicates that the market has confidence in the corporation's ability to generate earnings in the future.

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At the beginning of the year, a firm has current assets of $327 and current liabilities of $231. At the end of the year, the cur
nata0808 [166]

Answer:

Change in the Net working capital is $124

Explanation:

Working Capital can be define as the net amount between the Current Asset and Current liability of a particular year

It is better written as Working capital = Current Asset - Current Liabilities.

At the beginning of the year, the working capital is = $327 - $231 = $96

At the end of the year, the working capital is = $491 - $271 = $220

Change in Net working capital = $96 - $220

Change in Net working capital = $124

7 0
4 years ago
Marlee mills owns a home in the village of Sheridan with a market value of $46,800. The assessed value of the home is $16,380. A
astra-53 [7]

Answer:

<em>=>  Danielle pay $573.3 in property tax</em>

Explanation:

To calculate the property tax of the house, we take the property tax rate multiply by the assessed value of the property.

=> <em>Property tax = Assessed Value x Property Tax Rate</em>

The assessed value estimate the market value for the property, however even when there is large gap between these two, the assessed value is still used to calculate property tax because it is its purpose.

So that Danielle pay in property tax:

<em>Property tax = 16,380 x 3.5 = 57,330 cent = $573.3 </em>

<em>=>  Danielle pay $573.3 in property tax</em>

<em />

5 0
4 years ago
Dog Up! Franks is looking at a new sausage system with an installed cost of $460,000. This cost will be depreciated straight-lin
Anton [14]

Answer:

The Net Present Value (NPV) of this project is <u>$93,405.59</u>.

Explanation:

Note: Find attached the excel file for the calculation of the NPV of this project.

Net present value (NPV) refers to the present value of cash inflows minus the present value of cash outflows over a specified period of time.

On its own, present value (PV) refers the value that a future sum of money or stream of cash flows has now or currently given a specified rate of return. The formula for calculating the PV is given as follows:

PV = FV / (1 + r)^n

Where,

FV = Future value

r = discount rate. This is given as 10% in this question

n = Relevant period, e.g. year

The above explanation and formula together with other stated formulae in the attached excel file is used in calculating the NPV of this project.

Download xlsx
7 0
3 years ago
Consider a monopolist currently selling output Q to two different markets: Market A and Market B. This monopolist is able to pri
sweet [91]

Answer:

1. This is true because demand in market A is more inelastic which means demand curve and marginal revenue curve are steeper in this market. at any quantity marginal revenue will be higher in market A than in market B

2. This is true because market where demand is inelastic have a higher price. This is because revenue is increased when higher price is charged in market with inelastic demand.

3. This is false/uncertain because when price is higher in market a the quantity will be lower relativity. This is due to the downward sloping demand function in which price is increased quantity will decline.

Explanation:

8 0
3 years ago
The supply of "cash" (paper and coin) is produced by the U.S. Mint and the Bureau of Engraving, but the _________________ contro
maksim [4K]

Answer:

Federal Reserve

Explanation:

The Federal Reserve (FED) distributes new currency through its 12 Federal Reserve Banks. Depository institutions (e.g. savings bank, commercial bank, savings and loan association, or credit union) buy currency from the Federal Reserve Banks when they need extra cash and they deposit cash when they have too much cash.

8 0
4 years ago
Read 2 more answers
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